Unicorn deals are called unicorn deals for a reason.
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I always suggest that folks do research to figure out what is a reasonable discount they can expect on a specific car. I understand the car buying game - dealers start low and car buyers start high as far as discount off MSRP go, and at the end, both parties agree to meet in the middle.
However, since we are living in unprecedented times, and with supply at an all time low, dealers are not going to be âgivingâ cars away. At the end of the day, dealerships are in the business of making money. I donât fault some dealers for trying to maximize profits on a hot selling car/model.
Arenât some Kia dealers still selling Tellurides either at or over MSRP.
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Dealers are rich. Unless they have a terrible management team they are a license to print money. Even âloserâ deals are profitable, but just ânot as profitableâ.
Also, how are dealers running out of inventory with 40 million people unemployed and a high percentage with reduced wages, businesses collapsing, etc. are people rich? Who is buying all these $80k vehicles
Iâve only ever tried the former and had success, you only need 1 to bite, it doesnât matter what the average dealer offers. Same reason dealers start high, you only need 1 (oblivious customer) to bite.
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Have you ever worked at or closely with a dealer? Câmon guy.
#DealerConspiracy
If there is enough of a conversation going on that their are counter offers, then they didnât shut down from the initial offer.
The dealers here did shut down the conversation by saying ânot budging off MSRP and the incentives are going awayâ. Thatâs a polite way of saying âweâre not dealing with youâ.
Of all comments that could have been said, I have no idea why the âincentives are going awayâ cherry on top had to be included. I wouldâve walked away just as normally had it not been bowtied to the " 0% off of MSRP" counter LOL
Sounds to me like they were saying âand donât let the door hit you on the way outâ with that one
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They donât know that for certain but in this market condition thereâs no reason for FS to offer any more incentives.
Itâs a common tactic to prey upon the ego of people. If they imply you canât afford it, a lot of people respond by wanting to show they absolutely can afford it.
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Wow thatâs incredible. First time hearing this and I had no idea. I got the hint that they were unsubtly calling me a plebian but all it did was largely irritate me and make me want to never do business with them LOL
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Although a lot of people are out of work. I think the majority of those that are out of work arenât the ones that could have paid for a 80k car anyway. Iâm in the residential architecture field and my business is still booming, although I know it could collapse tomorrow. I have a friend that works at a local Lexus dealer and he said their sales are not down hardly at all. So, someone has the $$$ to buyâŚlol
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Someone working at Clorox or Lysol these days would not have problems shopping for a new car. Heck I could say the same for Comcast, Zoom etc
I had a Lexus dealer try that once. It made me not work with them anymore, for calling me cheap. âThis car may not be right for youâ. I wonder what kind of suckers fall with that kinda attitude.
Ones who go to the dealer before researching online.
Moral of the story: Dealers play games, customers play games. Whoever is the most strategic winds up coming out on top.
Chicken and the Egg. Who came first?
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Dealers are rich?
Really bro? Most dealers just sell new cars losing money. Yeah, they get holdbacks + monthly bonus if the goals are met through the corporate, but what if they donât reach the goal?
Plus, you also have to take into the consideration of the salaries, commissions, and ads that they run on different websites, televisions, and such.
In fact, if you go to a brand dealerships, new cars make less than 15% while Used, Parts, Service, and Collision Center make up 85% or more.
So, no. Losers are never profitable. They just donât profit.
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Plus each dealer is not printing money, but rather the auto group. Each dealership returns a nice profit after service and parts, but the real money is made in owning 10+ stores. No one gets rich owning 1 or 2 dealers.
Iâm convinced a car salesperson could sign you on a lease that was $10k over MSRP, full MF markup, every addon in the book, and theyâd still tell you as you were signing âWeâre losing money on this oneâŚâ. But with some of these numbers, you are getting to where they are actually losing money on the deal.
The problem with economics is, people see a supply/demand curve, think they know everything about economics, and then beyond that go on to forget about the supply side. Everyone was so sure there would be plentiful COVID-19 discounts to be had this year (to be fair, I was also stupid and thought I could outsmart COVID by doing a custom order to lock in better pricing, since I thought deals would get worse).
Demand probably hasnât dropped as much as people expected because a) Luxury cars tend to be leased more, which means people canât delay replacing them like they might if they were owned/financed, and b) The economic effects so far have been disproportionally felt by lower-income people. Weaker demand can also be counter-intuitive in this area, since it may mean a dealership is less likely to hit their targets and thus have less room to discount, since some per-unit incentives depend on that.
Supply got whacked by supply chain issues and plant shutdowns. Dealers lost tons of inventory and a lot of custom orders got cancelled as well, which led to many of those who lost their orders to get in-stock vehicles instead.
Not really surprising that deals are harder to come by now.
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